Yahoo Finance Major RBA shake-up coming after year of pain
The RBA board will only meet eight times a year instead of 11.
The Reserve Bank of Australia (RBA) will cut the number of times it meets to set interest rates from next year, following the 51 recommendations handed down in this year’s RBA review.
From 2024, the board will meet eight times a year instead of 11, RBA governor Philip Lowe announced today.
Four of those meetings will be held on the first Tuesday of February, May, August and November, while the remainder will be held midway between those dates.
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The board meetings will also be longer and will start on Monday afternoon and continue through to Tuesday morning, with decisions to be announced at 2:30pm.
“The less frequent and longer meetings will provide more time for the board to examine issues in detail and to have deeper discussions on monetary policy strategy, alternative policy options and risks, as well as on communication,” Lowe said.
“Likewise, the staff will have more time for analysis, with less time spent preparing summaries of recent developments.”
The post-meeting statement will now be issued by the board, instead of the governor. The governor will also hold a media conference at 3:30pm, an hour after the announcement, to explain the decision to the public.
Future rate rises still possible
Lowe also addressed the bank’s decision to leave the cash rate on hold at 4.10 per cent earlier this month.
The governor did not rule out future rate rises and said it would also depend on economic data, including on inflation, the global economy, the labour market and household spending.
“It remains to be determined whether monetary policy has more work to do. It is possible that some further tightening will be required to return inflation to target within a reasonable time frame. Whether or not this is required will depend on how the economy and inflation evolve,” he said.
Lowe’s future in doubt
This may be the last speech Lowe gives as RBA governor, with Treasurer Jim Chalmers preparing to announce the next RBA boss following the expiry of Lowe’s seven-year term in September.
“In terms of my own position, as I have said before, if I was asked to continue in the role, I would be honoured to do that and I would continue,” Lowe said.
“If I am not asked to continue in the role, I will do my best to support my successor, and the treasurer has said he will make an announcement before the end of this month.”
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